In today’s Macroeconomic Briefing we focus on the US-China trade talks, in what appears to be the only game in town this week. Equity markets are nervous, and there’s a significant risk of a market correction should the trade talks go awry. Capital Alpha put the most recent headlines from US officials, and President Trump, into the context of the overall US strategy on trade, arguing that it is not just US-China trade that is at stake here, but all of the trade deals that the US is working on. It all comes down to a successful resolution on China, otherwise everything else falls apart. Hence the risks markets are fearing this week. Cornerstone Macro aren’t optimistic on any tangible progress this week, even though their poll of clients suggest that opinion is split down the middle. Gavekal argue blind panic may not be justified, because corporate America is better placed to handle the imposition of tariffs now than was the case in 2018, while Rareview Macro and Nomura assess the key market levels, and influence of systematic strategies on equity markets when more informed newsflow comes to pass, as well as strategies investors might employ to these hedge risks.